Motu Note #53

Distinctive neighbourhood housing patterns in Aotearoa New Zealand

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Note overview

Uncovering housing inequality in Aotearoa New Zealand

This research highlights distinct housing and demographic patterns in urban neighborhoods across Aotearoa New Zealand. The goal is to identify areas where racism and discrimination in housing markets may harm residents' socioeconomic outcomes.

 

The complex nature of discrimination

Neighborhood-level patterns alone cannot confirm the presence or extent of discrimination. Housing market outcomes reflect a web of factors, including income distribution, resident preferences, and housing supply and demand. Discrimination in housing can narrow options or raise costs of desirable choices. Systemic racism in employment, education, or social capital can also fuel housing inequality, even without direct housing discrimination. Identifying discrimination in housing is challenging due to the many factors at play.

 

Different methods for detecting discrimination

Audit studies offer a direct approach, using multiple applicants of different ethnicities applying for the same property to reveal bias. Surveys capture people's experiences and perceptions of discrimination, while critical discourse analysis examines discriminatory language in political discourse and academic articles.

Indirect methods look for patterns in housing outcomes that suggest discrimination. This includes analysing where people live or housing market outcomes like purchase prices.

Our study adopts an indirect approach, applying statistical methods (exploratory factor analysis) to data from the 2018 New Zealand Census to identify unique neighborhood housing and demographic patterns. While this can't quantify discrimination, it highlights patterns for further investigation.

 

Contributing to broader research on racism

This study is part of a larger effort to explore the geography of racism in Aotearoa New Zealand, aiming to uncover ethnic residential patterns and the institutional drivers of housing inequality. It contributes to the Working to End Racial Oppression (WERO) research program, which tackles institutional and interpersonal racism in Aotearoa New Zealand.

The findings in this study will inform further studies on residential choices, rental market practices, and the health impacts of segregation-related deprivation.

 

Citation

Kotula, Hannah and Dave Maré. 2024. Distinctive neighbourhood housing patterns in Aotearoa New Zealand. Motu Note 53

Funders

Ministry of Business, Innovation and Employment